A drop in oil prices, which took a turn lower after Monday’s sharp rally, curbed appetite for stocks and fueled demand for haven assets, mainly gold and government bonds.

Analysts also pointed to a well-received auction of Japanese government bonds overnight as supporting the bid for Treasury bonds. Japan’s Ministry of Finance auctioned 800 billion yen ($7.82 billion) in 30-year bonds on Tuesday.

“There was trepidation with JGB auction given all the stimulus from the central bank, but in the end, the auction was well received and that stabilized U.S. bonds,” said to Tom di Galoma, managing director at Seaport Global.

Treasury yields were still hovering near their highest level since just before the late-June U.K. vote to leave the European Union sent global yields plunging.

The yield on the 10-year Treasury note
TMUBMUSD10Y, +0.00%
the U.S. benchmark, fell 4.1 basis points to 1.545%, according to Tradeweb. Yields and prices move in opposite directions and one basis point is equal to one hundredth of a percentage point.

The yield on a two-year Treasury note
TMUBMUSD02Y, +0.00%
declined 0.8 basis point to 0.714%. And the yield on the 30-year bond
TMUBMUSD30Y, +0.00%
known as the long bond, declined 4.1 basis points to 2.258%.

Investors have been reluctant to buy short-term bonds ahead of the annual Jackson Hole conference at which top central bankers meet, said di Galoma. The event is scheduled for Aug. 26.

Short-term yields tend to be vulnerable to spikes when expectations for rate increases rise. Markets are currently pricing in less than 50% chance of a rate hike in December, according to CME Group’s Fed Watch tool.

Monetary-stimulus actions by global central banks have been keeping a lid on long-term Treasury yields, which have been drifting lower since the start of the year. Relatively higher-yielding U.S. bonds attract foreign investors who prefer them to bonds with lower or negative yields, which exist in Germany and Japan.

This week, investors will also focus on a $62 billion worth of supply of Treasurys from refunding auctions.

A $24 billion auction of 3-year notes on Tuesday saw strong demand, leading the notes to be sold at a lower yield than what was originally offered, according to market participants. The notes were sold at a yield of 0.850% compared with the original offer of 0.862% before the sale. The yield on existing 3-year bonds
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was off 1.6 basis points on the day at 0.831%.

On Wednesday, $23 billion in 10-year notes is scheduled for sale while $15 billion in 30-year notes will be auctioned Thursday.

“This week’s auctions will give us a chance to see if there’s an appetite for new bonds,” said di Galoma.

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